Srinagar, Aug 14 (PTI) The Jammu and Kashmir High Court on Wednesday quashed the case and charge sheets filed by the Enforcement Directorate (ED) against former Jammu and Kashmir chief minister Farooq Abdullah and others in connection with its money laundering probe linked to alleged irregularities in the Jammu and Kashmir Cricket Association (JKCA).
In its 13-page order, Justice Sanjeev Kumar came down heavily on the ED saying it “is not an authority or investigating agency in any manner superior to CBI, nor is vested with or conferred the power and jurisdiction to sit in appeal against the investigation made and the conclusion drawn later.”
The judge, who had reserved his judgement on August 7, said that going by the CBI charge sheet, it is evident that the offence of money laundering is not made out.
“The complaint, the charge sheet and the charges framed by the designated court are quashed,” the judge said but asked the ED to appear before the designated CBI court and argue on money laundering charges.
If the designated CBI court agrees, the ED can file a fresh case.
“The ED cannot be permitted to preempt the outcome of an exercise, which is yet to be undertaken by a competent court of law at the state of charge/discharge.
“As on date, the charge sheet presented by the CBI is only with respect to section 120-B. 406 and 409 RPC, which are admittedly not the scheduled offences,” the court said.
The ED had named National Conference chief Abdullah, Ahsan Ahmad Mirza (former treasurer of JKCA), Mir Manzoor Gazanffer (another ex-treasurer of the JKCA) and some others as accused in the charge sheet.
Shariq J Reyaz, representing Mirza and Gazanffer, had moved the high court saying that the ED had no jurisdiction over the case and the charge sheets filed against his clients should be quashed.
The ED was represented by Additional Solicitor General S V Raju through virtual mode.
“The ED… must accept the investigation carried out by another investigating agency and the conclusion drawn by the said agency in respect of commission of the offences other than the offence under PMLA,” the order said.
In conclusion, the judge said that “with a view to maintaining harmony and to avoid contradictory stand by the two investigating agencies operating in their independent fields, it is necessary that the ED respects the decision of the CBI…”
Mirza was arrested by the ED in September, 2019 and a charge sheet was filed against him in November that year and the trial in that complaint is going on.
Abdullah has been questioned multiple times by the agency in the case.
The federal probe agency had attached assets belonging to Abdullah and others worth Rs 21.55 crore under three separate orders issued by it in the past.
The agency’s case is based on a 2018 charge sheet filed by the CBI against the same accused.
The CBI charge sheet filed against Abdullah, Mirza, Gazanffer and former accountants Bashir Ahmad Misgar and Gulzar Ahmad Beigh alleged “misappropriation of JKCA funds amounting to Rs 43.69 crore” from grants given by the Board of Control for Cricket in India (BCCI) to promote the sport in the erstwhile state between 2002 and 2011.
The ED had earlier said its probe found that JKCA received Rs 94.06 crore from BCCI in three different bank accounts during financial years 2005-2006 to 2011-2012 (up to December 2011).
It had alleged that several other bank accounts were opened in the name of the JKCA into which the funds were transferred. The bank accounts along with the existing bank accounts were later used for laundering JKCA funds.
The court was hearing arguments on whether a case for offence under money laundering was made and whether the ED can examine and register a case already being pursued by another agency.
